The governor of the Bank of England, Andrew Bailey, has been put forward as the next chair of the G20’s financial regulatory body, the Financial Stability Board (FSB).
The Nomination Committee of the FSB has decided to recommend Bailey for a three-year tenure starting in July, as stated in their announcement on Monday.
The G20 has tasked the FSB with leading efforts to establish a regulatory framework for cryptocurrency assets. In July 2023, the FSB completed its guidelines regarding the oversight of crypto assets and global stablecoin systems, which it notes potentially heighten financial stability risks, according to the organization’s online resources.
Currently, Bailey is serving as the chair of the FSB’s Standing Committee on Supervisory and Regulatory Cooperation. He has been pivotal in shaping the FSB’s global regulatory framework for cryptocurrency activities as well as the implementation roadmap for crypto assets.
“Andrew has demonstrable experience in fostering collaboration, having spearheaded crucial FSB reform initiatives related to cryptocurrency and non-bank financial intermediation,” stated Klaas Knot, President of De Nederlandsche Bank and current Chair of the FSB. “This background equips him well to lead the FSB as it focuses on successfully executing the reforms that have been agreed upon.” Knot’s own term as chair will conclude in June.
Since assuming the role of governor at the BoE in 2020, Bailey has spearheaded significant initiatives in the realm of digital currencies. The BoE is actively investigating the possibility of a digital pound and aims to regulate stablecoins, which are assets pegged to other currencies, to maintain economic stability. Additionally, the bank has announced plans to conduct various experiments involving central bank digital currencies and distributed ledger technology.